Highlights Recently Published Regualtory Notices 16-30 of September 2016


Highlights Recently Published Regulatory Notices

16-30 of September 2016

From Chicago Board Options Exchange:

  • Proposes to permit a new series to be added up to, and including on the expiration date for expirations listed under the Nonstandard expirations Pilot Program
  • Proposes various changes to its opening procedures to reorganize and simplify the rule and other changes to its opening procedures to reflect current system functionality.
  • Announces effective October 3, 30216 its Quote Lock time will be set to 2 milliseconds for all hybrid classes in the regular and extended trading sessions.

From Depository Trust Company:

  • Reminds participants of the production parallel testing period of October 26, 2016 through Q1 2017 for Redemptions Lifecycle functionality in CA Web.
  • Publishes list of non-transferrable securities to be destroyed on or after December 22, 2016.
  • Proposes rule change related to processing Money Market instruments.
  • Advises participants of SEC approval of a rule change amending its Reorganization Service Guide which now allows a participant to cover a protect on behalf of another participants during a voluntary reorganization event.

From Fixed Income Clearing Corporation:

  • Issues reminder to Netting Members of their requirement to report certain GSD netting-eligible activity engaged in by their foreign affiliates to FICC.

From FinCEN:

  • Issues advisory to assist financial institutions guard against evolving e-mail fraud schemes related to wire transfers.


  • Issues notice of Tick Size Pilot File updates.
  • Releases the Firm Element Advisory in a new online format.
  • Announces addition of a new ATS Order Type Entry Screen to the OATS Administration section of the OATS Web interface.
  • Files amendments to its proposal to require the reporting of U.S. Treasury securities transactions to TRACE.
  • Receives SEC approval of a rule change to its Arbitration Procedures rule.
  • Publishes its contingency plans related to the publication of the Tick Size Pilot Securities list.
  • Proposes amendments effecting the operation of the Block Size and TAISO exception to the Trade-At requirement of the Tick Size Pilot Program.

From Municipal Securities Rulemaking Board:

  • Seeks comment on new Rule G-49 related to transactions below the minimum denomination of an issue of municipal securities applicable to below-minimum denomination customer and inter-dealer transactions.
  • Issues request for comment on amendment to its Rule G-3 to establish continuing education requirements for certain associated persons of a municipal advisor.

From Nasdaq:

  • Files rule amendment to enhance the reopening auction processing post trade halt and to prohibit a member from a require for review of an execution arising from a Halt Auction as clearly erroneous execution.
  • Issues details and FAQs related to its Options Market technology refresh.

From National Securities Clearing Corporation:

  • Announces schedule of the implementation of several enhancements designed to streamline processing of transactions via its Web Portal Mutual Fund application.

From New York Stock Exchange:

  • Issues memo to review the handling of order types Gquotes, Buy Minus/Zero Plus and d-quote under the Tick Size Pilot Program starting on October 3, 2016.

From Options Clearing Corporation:

  • In light of the SEC’s money market reforms coming in October 2016, announces it has temporarily declared all money market funds to be ineligible as a form of margin effective immediately.

From the Securities & Exchange Commission:

  • Extends the comment period to November 2, 2016 on its proposal to amend certain of its disclosures requirements that may have become redundant, duplicative, overlapping, outdated or superseded.
  • Releases DTC amendment to DTC’s proposed rule change to update its procedures to make changes to certain options within its Participant Subscription Offer Program and Participant Tender Offer Program functions.
  • Announces Merrill Lynch has agreed to pay a $12.5 million penalty for maintaining ineffective trading controls that failed to prevent erroneous orders from being sent to the markets and causing min-flash crashes.
  • Fines UBS Financial Services $15 million to settle charges of failure to education and train UBS sales force about critical aspects of complex financial products sold to retail investors.
  • Proposes to amend the Exchange Act Rule 15c6-1(a) to reduce the standard settlement cycle from T+3 to T+2.
  • Proposes to expand the definition of a registered clearing agency to subject them to enhanced requirements under Rule 17Ad-22(e).
  • Adopts amendments to its rules to establish enhanced standards for the operations and governance of registered clearing agencies meeting the definition of “covered clearing agency.”
  • Issues notice that its funding will continue at the same rate for Section 31 fees until 60 days after Congress passes a budget.
  • Designates a longer time period until November 17, 2016 in which to approve or disapprove FINRA’s proposed rule change related to the disclosure of pricing information on customer confirmations for fixed income securities transactions.